Wed 21 Jan 2009
BIG NEWS FOR 2009 FHA REFINANCES! HUD announced Friday January 16, 2009
Posted by Tracey Rumsey under Uncategorized
[2] Comments
| FHA will permit loans originated under the 2008 loan limits to be refi-ed at mortgage amounts that exceed the current 2009 (and future) geographic loan limits. For streamlines with appraisals or full refinances, the mortgage amount may exceed the current geographic limit so long as: |  Tracey Rumsey |
- the new loan amount (without MIP) does not exceed the prior case loan amount and
- the new appraised value supports the loan amount and the LTV is not greater than 97.75%.
Great news! HUD has brought the 2008 high-limit orphan loans back into the fold! So important because these higher loan limit borrowers have so much to gain from lower interest rates right now. Not to mention the lenders who will originate their refinances.
Warning: Early payoff penalties could pound your profits!
- Most investors have an early payoff penalty that will be assessed to the loan seller if the loan is paid off within 90-120 days of purchase.
- Know your company’s policy regarding your commission and that early payoff penalty.
